The way things are going any distressed company is rumored to be in the sights of a private equity firm. They’re buying things left and right why not The Gap (GPS), a clothing chain that’s a staple to America’s malls? The AP’s Michael Liedtke writes the company “generates lots of cash and retains a well-known brand.” Plus, a buyout firm could make some bucks splitting off Old Navy or Banana Republic. Liedtke points out private equity likes retail with Neiman Marcus and Toys “R” Us in firms’ hands.
The New York Times‘ DealBook reports doubt over a buyout. One reason being The Gap doesn’t have the real estate that could be sold to pay for the buyout.